Nasdaq To Pay For Botched Facebook Trades
RENEE MONTAGNE, HOST:
NPR's business news starts with NASDAQ compensating clients.
(SOUNDBITE OF MUSIC)
MONTAGNE: The NASDAQ stock exchange will pay $40 million in compensation for botched trades that occurred during Facebook's initial public offering. NASDAQ clients lost millions of dollars on Facebook's May IPO because of computer glitches. The opening trade was delayed by more than half an hour, and many investors were unsure if their trades had gone through.
NASDAQ's $40 million does not come close to the more than $100 million that analysts estimate were actually lost to the technical problems. The payment includes $13 million in cash to investment firms. The rest of the compensation will take the form of trading discounts.
NPR transcripts are created on a rush deadline by a contractor for NPR, and accuracy and availability may vary. This text may not be in its final form and may be updated or revised in the future. Please be aware that the authoritative record of NPR's programming is the audio.